Private Finance Initiative

To ask the Secretary of State for Scotland if he will list the projects currently being considered for PFI funding in Scotland, indicating the number of contracts with performance bonuses as well as penalties built in; which projects are build, own and operate; and if the service costs for PFI projects can be broken down into capital cost and service cost. [66000]

[holding answer 20 January 1999]: The information requested on projects under consideration for PFI funding and on signed projects which are build, own and operate schemes is set out in the tables.

Precise information on whether a scheme under consideration will be build, own and operate depends on the outcome of negotiations. No contract sponsored by The Scottish Office has a performance bonus regime. Payment mechanisms vary on the basis of usage, availability and performance. In general, payments commence on the delivery of services, with deductions thereafter for non-availability or poor performance. A feature of PFI projects is that they are not separable into components, and so service costs are not a separable element of the overall charge. From 1 July 1999 this will be a matter for the Scottish Parliament.
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Table 1—PFI projects currently being considered for PFI funding in Scotland

The current hospital building programme is the biggest in the history of the NHS. It is funded by a mixture of public and private finance. PFI funding is used when projects are affordable, prove value for money, offer improved healthcare and provide significant advantages for patients. From 1 July 1999 this will be a matter for the Scottish Parliament.